Nike Inc., according to an internal memo, plans to increase salaries for more than 7,000 employees after an internal pay review. The annual bonus awards process is also being changed.
According to the memo received by the Wall Street Journal, Nike said the changes are designed to “support a culture in which employees feel included and empowered.”
They come amid the company’s drive to address pay equity and change its workplace culture in the wake of several executive departures. Nike has more than 74,000 employees with about 10 percent of employees being impacted.
A Nike spokeswoman confirmed the announcement to Business Insider.
“This month, we will make updates to employee pay and awards,” she told Business Insider. “Through Nike’s Total Rewards program, we strive to meet the diverse needs of our employees, deliver differentiated, competitive pay and benefits and support a culture in which employees feel included and empowered.”
The Journal report notes that the salary adjustments are designed to ensure equity of compensation for similar job functions around the world. The changes impact “all levels, geographies, functions and brands” and adjustments will begin in August. The pay raise will be annualized over the balance of the fiscal year, which began June 1.
The annual bonus will now largely be based on budgeted earnings before interest and tax for the year, and less on individual and group performance. Those eligible to receive bonus in share will now be able to choose their awards either as stock options, restricted stock units or a 50/50 mix.
Photo courtesy Nike
